Stocks on our Buy/Sell/Hold list are drawn from gainers and losers from the previous week and various analyst reports.

PZ Cussons Nigeria Plc: SELL

Latest Results: Results for the twelve months ended May 2018 show that revenue increased from N78.2 billion in 2017 to N80.5 billion in 2018. Profit before tax fell sharply from N4.8 billion in 2017 to N2.3 billion in 2018. Profit after tax also dropped from N3.6 billion in 2017 to N1.9 billion in 2018.

Pricing

Current Share Price: N13.50
Price to Earnings Ratio: 12.79x
Price to Book Ratio: 1.30
One Year Return: -46.99%
Year to Date: -34.47%

External View

Analysts at FBNQuest have an ‘Underperform’ rating on the stock. They have a target price of N19.1 which indicates a potential upside of 41% from the stock’s price of N13.5 as at when the report was prepared.

Analysts at Afrinvest have a one-year target price of N22.27. This indicates a potential upside of 58.5% from the stock’s price of N14.05, as at when the report was prepared.

Analysts at United Capital have a one-year target price of N20.6. This indicates a potential upside of 52.6% from the stock’s price of N13.5 as at when the report was prepared.

Our View

Nairametrics retains its SELL rating on the stock, as its TTM earnings per share is 50% lower than the prior year. First quarter results will provide more clarity on the possibilities of the company surmounting the factors that led to the poor FY 2018 results.

AIICO Insurance: HOLD

Latest Results: Results for the half year ended June 2018 show that gross premium increased from N14.8 billion in 2017 to N19.2 billion in 2018. Profit before tax jumped from N1.1 billion in 2017 to N2.1 billion in 2018. Profit after tax also jumped from N988 million in 2017 to N1.9 billion in 2018.

Pricing

Current Share Price: N0.80
Price to Earnings Ratio: 2.84x
Price to Book Ratio: 0.42
One Year Return: 51.67%
Year to Date: 53.85%

External View: None

Our View

Nairametrics retains a HOLD rating on the stock, though it has dipped slightly from last week.

NPF Microfinance Bank: HOLD

Latest Results: Results for the half year ended June 2018 show that gross earnings increased from N1.6 billion in 2017 to N1.9 billion in 2018. However, profit before tax dipped slightly from N508 million in 2017 to N447 million in 2018.

Pricing

Current Share Price: N1.49
Price to Earnings Ratio: 5.29x
Price to Book Ratio: 0.63
One Year Return: 45.96%
Year to Date Return: 19.20%

External View: None

Our View

NPF Microfinance Bank is a HOLD in Nairametrics’ opinion, as it is currently trading at 19.2% above its year low of N1.25. Investors keen on entering would be better off waiting for the stock’s price to decline before entering.


This is not a buy sell or hold recommendation. Remember to consult a competent financial analyst or stockbroker if you need help with your investment decisions. 

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